Openwave greenshoe exercised, raising convertibles to $150 million

New York, Sept. 9 - Openwave Systems Inc. said underwriters of its recent sale of convertible subordinated notes due 2008 exercised the $15 million over-allotment option in full, raising the size of the deal to $150 million.

The Redwood City, Calif. communications software company priced the original $135 million of securities before the market opened on Sept. 4 to yield 2.75% with a 20% initial conversion premium.

The deal was increased at pricing from a planned $100 million.

Merrill Lynch & Co. was lead manager of the Rule 144A transaction.

Holders will have full dividend protection and the first six coupon payments will be collateralized with U.S. Treasuries.

Openwave plans to use proceeds, after purchasing the Treasury strips, primarily for additional working capital and other general corporate purposes, including potential acquisitions.

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